Is there a life insurance policy that allows for payment before death?

Yes, most life insurance companies provide policies that can pay benefits that the insured can get enjoy even while he is still living. This is through a living benefit rider, usually called an ADB, or accelerated death benefit.

The ADB can be bought at the time the policy is issued, or later on during the life of the policy. With this rider, the insured can "advance" his death benefits when he is diagnosed with a terminal or critical illness. When this happens, the insurance company will pay a portion of the insured's death benefits. The insured can get from 50 to 80 percent of the face amount. This is either paid on an installment basis or as a lump sum.

Any one of the following should occur so that you can avail of the accelerated death benefit:

• You cannot perform your usual functions, that you do on a daily basis, such as going to the toilet or taking a bath by yourself
• You are diagnosed with a serious and terminal illness that is likely to occur within two years
• You are diagnosed with a medical condition such as kidney or liver disease, a heart ailment, Alzheimer's or if you had a heart attack or an organ transplant
• You become confined permanently to a nursing home for proper care

You are free to spend your accelerated death benefit proceeds any way you like. You can use it to

• Fund your child's education
• Pay medical or nursing home bills
• Go places or simply do things with friends

Please note that although you have received a portion of the death benefit, you should still make sure that premiums are paid on time so that your beneficiaries can receive the rest of the death benefit upon your death.

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